Credit bureaus and payment companies are testing ways to use social media — say, a Facebook Inc. (FB) post about a recently purchased Corvette — to verify a person’s identity and even assess consumer creditworthiness.
Equifax Inc. (EFX), EBay Inc. (EBAY)’s PayPal and Intuit Inc. (INTU) have begun trials to see whether social posts can help prove identities, and, in some cases, detect whether customers are lying about their finances.
Users of Facebook, Pinterest Inc. and Twitter Inc. share personal details every day through public postings, status updates and location check-ins. That information is proving useful in validating identity, evaluating whether to make a loan and sniffing out fraud that cost U.S. online retailers $3.5 billion last year, according to CyberSource Corp. EBay set aside $580 million, or 4.1 percent of net revenue, to cover transaction and loan losses last year. Continue reading